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Signorina Algeri

Apr 29, 2021

Previous year never audited by the nominated auditor

in SMSF Technical Forum

I have recently been assigned to do an audit and I have discovered the following issues and would like assistance as to what part of the audit contravention is affected.

1. Previous years fund return was never audited by the nominated auditor - confirmed by the auditor on the return. - how do i report this

2. Opening Bank balance is not correct - I am satisfied with the error which affects the balance Sheet discrepancy under $30000 - is this reportable in the audit report or do we amend the previous years return to correct it.

3. Pension Minimun standards not met, but satisfies the 1/11th rule - do we need to report this in the audit report

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Apr 30, 2021

Hi Signorina

Thanks.

1. Re the prior years not being audited my view is that preferably the trustees would appoint you to audit the prior year financial statements (on the basis that they have not been audited). If the prior year audits are not completed you should disclose this to the ATO in Section G of the audit contravention report (ACR). Section 113 of SIS requires the trustees to arrange an audit each year.

2. If the prior year comparatives are not materially correct you should qualify the financial audit report in relation to the opening balances.

3. If the minimum pension has been underpaid but meets the 1/12th (not 1/11th) rule then this does not need to be reported in the audit report.

Regards

SMSF AAA